Jul 21: Deepwater production costs are falling at a dramatic pace and it will have massive implications for around $ 15 billion in investments eventually lined up in the KG Basin. 8Costs are already down 30% from 2014. 8A period of aggressive cost compression has brought average breakeven costs for projects down from $70/bbl in 2014 to approximately $40-50/bbl in 1Q 20178This breakeven analysis reflects full life-cycle economics that includes government take, development drilling, facilities, equipment, subsea, and operating expenditure with a 10% allowance for return on capital. 8While commercial gains primarily drove 2015 breakeven estimates to $55/bbl, engineering re-designs and efficiency improvements are driving the additional $10-15/bbl impact on breakeven projections for 2017 estimates.8The focus is now shifting to get to successful execution of $40/bbl or lower breakeven costs 8This will need step changes in efficiency and performance.8But not impossible.Click on Reports for a detailed analysis